Oil India Limited and BPCL Sign MoUs for Andhra Pradesh Refinery Project with Minority Stake Consideration

Bharat Petroleum Corporation Limited (BPCL) has entered into three Memoranda of Understanding (MoUs) with Oil India Limited (OIL), Numaligarh Refinery Limited (NRL), and Fertilisers & Chemicals Travancore Limited (FACT). These agreements aim to enhance collaboration in various sectors, including refining, petrochemicals, and green energy initiatives.

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BPCL and OIL have agreed to explore joint opportunities for BPCL's upcoming Greenfield Refinery and Petrochemical Complex near Ramayapatnam Port in Andhra Pradesh. This facility is expected to have a refining capacity of 9-12 Million Metric Tonnes Per Annum (MMTPA) and will require an investment of Rs 1 lakh crore (USD 11 billion). The project has already received necessary statutory clearances and land from the Andhra Pradesh government.

Strategic Collaborations for Infrastructure Development

The MoU between BPCL and OIL includes evaluating potential collaboration opportunities, such as OIL possibly acquiring a minority equity stake in the proposed joint venture. Sanjay Khanna, Director Refineries with additional charge of Chairman and Managing Director at BPCL, stated, "This collaboration marks a significant milestone in our journey to build world-class refining and petrochemical infrastructure in southern India."

Khanna further added that the Ramayapatnam complex would not only transform BPCL’s portfolio but also strengthen India's self-reliance in fuels and petrochemicals, aligning with the Atmanirbhar Bharat vision. The project is currently in the pre-project phase, with activities underway to ensure its timely execution.

Pipeline Expansion for Efficient Product Evacuation

In another significant move, BPCL, OIL, and NRL have signed a tripartite MoU to facilitate the efficient evacuation of petroleum products following NRL's expansion from 3 MMTPA to 9 MMTPA. This agreement involves constructing a 700-km cross-country product pipeline from Siliguri to Mughalsarai via Muzaffarpur. The pipeline project is estimated to cost Rs 3,500 crore.

The pipeline will transport Motor Spirit (MS), High-Speed Diesel (HSD), and Aviation Turbine Fuel (ATF). BPCL will own 50% of the pipeline, while OIL and NRL will share the remaining stake equally. This infrastructure development aims to enhance the distribution efficiency of petroleum products across regions.

Green Energy Initiatives with FACT

Furthering its commitment to green energy, BPCL has signed an MoU with FACT for the supply and trading of Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM). These products will be sourced from BPCL's upcoming Municipal Solid Waste-based Compressed Biogas Plant at Brahmapuram near Kochi Refinery.

The MoUs were formalised during the 28th Energy Technology Meet 2025. These collaborations reflect BPCL's strategic focus on expanding its infrastructure capabilities while promoting sustainable energy solutions. By partnering with industry leaders like OIL, NRL, and FACT, BPCL aims to drive growth in India's energy sector.

With inputs from PTI